Ooh la la land

[jta]

:) Have any of you got any thoughts on investing in France where apparently you can get up to 11 years guaranteed rent,

It seems the French Govt. backs a plan in order to get good quality accommodation built for tourists, you buy it and they lease it back, it has to stay as tourist accom. for a minimum 20 years.

My main question is 'is it safe and is it worthwhile'?
secondary would be 'how much are the management fees likely to be'?

any advice gratefully accepted

[TaxationPete]

Do you not have to be a French Resident to qualify. ?? Regards Peter

[jta]

hi pete
so far as I can make out you do not have to be a French resident. This is being advertised thru' brit websites as having good investment potentials (?)

[tenant29]

The big name in Leaseback investment in France is "Pierre & Vacances" and been around for many years . I suggest you put your questions to them directly ( via their website) as management fees may be included in the deal for flat buyers. But I am not sure about other companies offering similar leaseback deals.

Also you need to consider the tax situation in France ( annual wealth tax and capital gains tax, inheritance laws etc). The french leaseback system offers new property buyers an exemption on VAT but I am not sure if this concession is enough to compensate for the negative points. The other advantage is that you can live in your flat for a few weeks in the year and the rest of the time is rented out by the managment company ( P & V) .


Best to ask your questions at one of the overseas property exhibitions which seem to held all over the country at regular intervals. Quite often , an expert conveyancing solicitor will give a seminar on the purchase procedures and he is the one to advise how safe is the investment ?

The other places to get information may be the french embassy and WH Smiths ( French Property Magazine shelf ?) and taking a short holiday at a P&V site.

[Helen C]

I am no expert on this but did buy one of these leaseback properties 18 months ago - on a site called Port Minervois - see www.coralia-sa.com

The costs are:

notaires fees - about 3% of price
bank fees if arranging french mortgage - about 1% of price
Uk legal advice - from £400 upwards depending on how much advice
translator - depends on requirements
annual accountants fee - about £200
interest on mortgage?? - I have french mortgage fixed at 4.5%

Benefits:

I get 4% per annum guaranteed income.
I get 8 weeks personal use (not in July/Aug) and other seasonal restrictions
19.6% VAT back - so instant capital gain (some developers will advance the VAT - helpful if cash flow is an issue otherwise you pay and get a refund about 6 months later)

I used an agent www.latitudes.co.uk who were very helpful

As yet, no regrets...

[jeffrey]

Sorry to have to ask this, HelenC, but - in view of certain other members' misdeeds- are you in any way associated with (or financially interested in) the agency mentioned?

[Helen C]

Very definitely not. Though not offended by the question. Just know that when I was looking into the investment I would have liked to know others that could offer their experiences. I only endorse these companies based on my experiences.